The idea of setting up startup and business incubators have become common in different countries across the world. They are set up by non-governmental organisations, learning institutions and corporates that want to work with entrepreneurs. Some of the common services that startup incubator services provide include:
Financing Solutions
Most people who have a startup are always searching for seed funding for their businesses to take off. Incubators always provide them with solutions through different means. They can either get direct funding from the incubator as a grant or loan when they are setting up. The other option is for the incubator to connect them with investors who are interested in funding a business/project like the one they are working on.
Office Space
Sometimes, all a startup needs is to have the right space for the entrepreneur to operate. An incubator could provide an office space with computers, internet, and other services needed in the day to day running of the office. Some of them provide a cubicle for every person while others have an open office space arrangement for people to share ideas. There are also those that give funding to the startup specifically to cover the office space budget.
Teaching Basics of Business
Learning the basics of business goes a long way in ensuring a business is successful. Not many people who are getting into entrepreneurship understand the importance of learning the basics. Incubators always
have several modules of business, including customer care, marketing, balancing books, and investing. These are taught to the people at the incubator to help them become more successful when they finally take off.
Mentorship
Everyone who is thinking of setting up a startup company must appreciate the value of mentorship. Startup incubators link up the entrepreneurs with people who are already successful in the field. These people can mentor and nudge those that are coming up into the direction of growth. In most cases, the incubators will directly link up the entrepreneur with a mentor. In other cases, they are equipped with skills to identify the appropriate mentor. Other than mentorship, they also emphasise on the importance of networking for a startup, and some of the skills needed for successful networking.
Training on Management
Other than the basics of business, incubators always appreciate the fact that startups will develop to become bigger. To prepare the entrepreneurs for growth, the incubators teach them basics of communication, how to hire the right team for their business, conflict resolution, and important digital marketing skills that they will need to be successful.
It is always advisable that people who want to join an incubator do research to find out exactly what the incubator provides. This should align with the needs of the startup. There are many advantages that come with working with an incubator, including the fact that there is someone to guide the entrepreneur through the initial stages. There are also some disadvantages like how or might lose their ambition as they struggle to fit into the rules of the incubator. If you are a startup company, think through the pros and cons and go only for the one with an incubator with the most promise.